When does the installer version matter?

I notice that there are both a “current version” and an ”installer version” under Settings > About and wonder how and when the latter matters. Does it have something to do with the Electron framework?

Yes, the installer version has to do with the electron version.
Some functionality only works depending on the installer version.(so for example the option translucent window does not work with installer versions pre v0.8.12)

To update the installer version you need to download the installer from the website and install obsidian again(no need to uninstall the old copy).
You only need to do this when this is explicitly stated in the version announcement.

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Without looking in Announcements, I would not have known that downloading a new installer was recommended. Is there a way to add mention of it in Settings > About ?

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